How Does Lottoland Work? Answers Here!

With so many new lotto lovers across Australia registering at Lottoland, we thought it was high time to clearly spell out exactly how Lottoland works, especially our prices and prizes and what to expect if you win.

Here are the answers to some of the most common questions that we get asked here at Lottoland. Hopefully these answers will help you to understand a little bit more about how lottery betting works.

Q. HAS ANYONE EVER WON AT LOTTOLAND?

Here in Australia we have over 700,000 players who bet with us. Since we started, we have paid out over $29 million in prizes to winners!

Q. DOES LOTTOLAND DONATE MONEY TO CHARITY?

Lottoland is a private company and as such it is not possible for us to donate as much as an official lottery would. Lottoland Australia tries to support the local community as much as possible and this is displayed by our partnerships with charitable organisations and our donations to various causes. Some of our charitable work includes;

Lottoland's ongoing support to the Royal Flying Doctor Service: This includes donations of $50,000 for the sponsorship of the 'Lottoland Million Dollar Mitchell Street Mile' and most recently a pledge of $20,000 from Lottoland's #LottolandDance4Charity competition. Last year, Lottoland also offered up the sponsorship of the Manly Sea Eagles jersey to help raise awareness for the RFDS. Lottoland is committed to continuing this ongoing partnership.

Mark Hughes Foundation: In 2017, former NRL stalwart Steve Menzies and team Lottoland conquered Everest. The Sea Eagles legend and his team completed the monumental 5500m trek to help raise money and awareness for the Mark Hughes Foundation, a not-for-profit organisation in search of a cure for brain cancer. Lottoland was proud to sponsor such a great cause and are hopes the donation given to the Mark Hughes Foundation can help further support the research and possible cure for brain cancer.

Lottoland Mitchell Street Million Dollar Mile: The contribution saw Lottoland offer a $1 million prize to the winner of both the Men’s Elite and Women’s Elite races, should their winning time be an official world mile record. Despite no-one taking home the $1 million prize, Lottoland still donated a total of $50,000 to help support the Royal Flying Doctor Service.

Manly Sea Eagles Sponsorship: Lottoland's partnership with the Manly Sea Eagles will help the much-loved club re-invest in its infrastructure and ensure that it continues its 70-year tradition of playing home games in front of its adoring local Northern Beaches supporters.

Sydney Swans Sponsorship: Lottoland aims to support the local community and is extremely proud to sponsor the Sydney Swans.

Q. HOW DOES LOTTOLAND WORK?

Lottoland offers people in Australia the chance to bet on a wide range of international lotteries. The most important thing to remember with Lottoland is that you are not buying official lottery tickets and Lottoland is not affiliated with the official lottery providers in any way. Rather, you are placing a “lotto bet” on the outcome of the lottery draw. For Lottoland bettors this closely replicates buying an official paper ticket but there are a few important distinctions and common questions which we will address below.

At Lottoland you bet on the outcome of the official draw, based on exactly the same prizes as the official lottery. Lottoland is able to pay out any wins, large or small, and the proceeds can then be withdrawn by you whenever you wish.

For smaller prize tier payments we make the payment directly from the fund we have from the total sales for the draw. For us to make the larger prize tier payments we take out insurance policies to cover the eventuality of a Jackpot win or a substantial payout on your Lotto bet. Part of the Lotto bet price you pay goes towards the payment of this insurance policy. This means that we can pay out no matter how big the lottery jackpot win.

Q. HOW CAN LOTTOLAND PAY OUT JACKPOTS WORTH OVER $1 BILLION?

The majority of prizes at Lottoland are paid out of our profits as a normal part of business operations. However, when jackpots begin growing into hundreds of millions of dollars we employ major insurance companies to pay out such a large amount of money if a Lottolander wins.

Of course, as everyone knows, the more the risk the higher the premium, so once jackpots start to hit the half a billion mark there comes a point where our ticket prices rise, to cover these premiums. (Though such instances are rare).

Lottoland has also appointed KPMG as the external auditor of their financial statementswhile PwC are responsible for verifying that all payments are made to winners.

Q. IS LOTTOLAND SAFE?

Being licensed in Australia means that we have to abide by a number of strictly controlled rules, including those which relate to the security of everyone who uses Lottoland. All personal data - including payment details - will be processed to the highest safety standards at Lottoland. Lottoland.com.au itself gets only the last four digits of your card number to see, while the full details are stored by our payment service provider Adyen. Adyen must undergo stringent tests by Visa and MasterCard to be certified in accordance with PCI DSS and so to be able to handle the payments annually.

All transactions are securely encrypted and we take your privacy very seriously. This is essential in order to protect you, the customer, as well as to ensure we are fully compliant with all relevant government regulations.

All transactions are completed using a secure SSL connection, just like banks do. All Lottoland prizes, including jackpots, are fully underwritten by leading global insurance companies.

You can bet on any of these lotteries legally at Lottoland because you are not 'playing the lottery' but rather betting on the results. In order to buy an official lotto ticket you must be present in the country where it's run. In many cases, such as the US lotteries, you must also be an official resident in order to collect winnings. Betting on the results with Lottoland provides an alternative way for Aussie Lottolanders to participate and means you can win the same amount as the official jackpots.

One of our main objectives at Lottoland is to provide our customers with international lottery options without having to buy an airplane ticket!

For example, the US Power has long been popular outside of America. Aussie lotto fans have been in awe of the giant jackpots for years, but until now have never been able to enjoy all the features of it. Now that has changed and US Power has become one of the most popular lotteries at Lottoland in Australia.

And really, we haven't even scratched the surface here. There's a huge choice of lotteries here, some with very low jackpot odds, others with tougher odds but massive jackpots, and everything in between. Check out all our lotteries to see just how many we really have.

Q. WHY DID THE PRICE OF LOTTOLAND US POWER BETS KEEP GOING UP?

Sometimes big lotteries like Powerball have jackpots which rise into hundreds of millions of dollars. This is covered by our insurance company, but the insurance premiums rise when jackpots get this high. In circumstances where our insurance premiums are going up, in order to remain profitable Lottoland must also raise its prices accordingly or stop selling bets altogether so that we are not operating at a loss. In extreme cases, like the $1 Billion Powerball jackpot, options such as the Double Jackpot may be disabled as the cost of a ticket would be astronomical. However apart from the very rare circumstances when there are extraordinarily large jackpots prices will remain at the base level.

Q. HOW ARE PRIZES AT LOTTOLAND PAID OUT? WHAT IF I WIN THE LOTTERY AT LOTTOLAND BUT NO ONE WINS THE OFFICIAL LOTTERY?

If you win at Lottoland you win as if you had bought a ticket for the official lottery. This will usually only apply to the first place jackpot as lower tier prizes are static or not affected much by having an extra winner. Here are some possible scenarios for winning a hypothetical $100 million jackpot at Lottoland:

You have the winning numbers and no one wins the official jackpot: You would win as if you were the only winner and take the $100 million pot for yourself. The official lottery would continue to rollover.

You have the winning numbers and 1 person wins the official jackpot: You would win as if you were the 2nd winner of the official lottery and therefore win a 50% share of the jackpot or $50 million.

You have the winning numbers and 2 people win the official jackpot: You would win as if you were the third winner of the official lottery and take a 1/3rd share of the official pot or approximately $33.33 million.

You have the winning numbers along with one other Lottolander, and 2 people win the official jackpot: You would win as if you were the fourth winner of the official lottery and take a 1/4 share of the official pot or $25 million.

Q. DO I PAY US TAXES IF I WIN AN AMERICAN LOTTERY?

At Lottoland you win the same amount of money as you would if you bought an official lottery ticket. For American lotteries like Mega Millions and US Power this means that you get your winnings paid out as an annuity over 30 years and less the 38% you would pay in state and federal taxes (as state taxes on gambling vary from state to state this is an average). So while you do not pay any taxes, the winning amount you receive will be the same amount as a US-based winner would receive after tax was deducted from their winnings.

Q. DO I PAY TAXES ON MY WINNINGS IN AUSTRALIA?

You do not pay any taxes on your winnings in Australia because winnings from gambling are not taxable. Additionally, for European lotteries like EuroMillionaire and EuroJackpot you will be paid the full amount as a lump sum as most European countries don’t tax gambling winnings. The main exception to this European rule is the Spanish Xmas Lottery and El Gordo Primativa where your winnings would be less 20% as gambling winnings are taxed in Spain, and you will receive the same amount that a Spanish winner would get after tax.

Lottoland is a bookmaker, and not a lottery operator. You cannot purchase entries in any lottery via Lottoland. Lottoland allows you to bet on the outcome of lotteries from around the world. The website is operated by Lottoland. Lottoland has no relationship or affiliation with the operators of the lotteries. Bets do not contribute to the prize pool. Payouts are made in AUD, exchange rates apply.

* Divisions 1 to 3 for bets on the US Powerball and US MegaMillions are subjected to a 38% reduction, whilst Division 1 bets are paid out as 30 year annuity or discounted lump sum as per T&C’s. US Powerball is not connected to the Australian Powerball. Divisions 1 to 3 for bets on SuperEnalotto are subject to 12% reduction as per T&C's.